Unit price of Embassy Office Parks REIT fell over 2.7 per cent during the day after Aravind Maiya stepped down as its Chief Executive Officer, as per SEBI’s interim order on Monday.

The markets regulator had directed his removal as the CEO, saying that he was not a ‘fit and proper person’ to lead the REIT due to his previous misconduct as an auditor in a separate case, for which he was penalised by the National Financial Reporting Authority and barred from practising as an auditor for 10 years.

The units opened with a gap on the lower side at ₹399.80 and went to a low of ₹392, before ending the day 2 per cent lower at ₹394.90 on the NSE. Maiya had joined Embassy REIT in 2019 and assumed charge as its CEO on July 1, 2023.

Embassy REIT, in a statement to the exchanges late on Monday, said Maiya would be stepping down as CEO of the REIT but will assume the role of Head of Strategy for the REIT, a clear indication that it was unwilling to let go of him.

It said it was reviewing the order and evaluating all options.

“The REIT’s board, and the management team will oversee all its operations and capital allocation to ensure that normal business is not compromised in any manner whatsoever, while evaluating the most appropriate approach for the interim CEO position,” it said.

New asset class

Embassy REIT, jointly sponsored by Blackstone and the Embassy group, had been the first REIT to be listed in India in 2019, introducing investors to a new asset class with commercial properties as the underlying.

Blackstone exited the REIT in December last year generating returns of 3-3.5x on its investment.

“The REIT’s strong management team in place will continue to be focused on delivering exceptional results,” the Embassy REIT statement said, adding, “The business is in great shape and the REIT’s stock performance is a reflection of the strong fundamentals in the sector.”

The units have appreciated over a fifth so far this year.

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